It's not, says chief operating officer Greg Fury, though both chief investment officer Stephen Mildenhall and director and portfolio manager Arjen Lugtenburg "are going to be a loss to us".
Mildenhall, a key figure at Allan Gray for the past 10 years, is leaving Allan Gray and overseas sister company Orbis. He's also leaving South Africa, moving to the UK where he plans to start up his own business.
Mildenhall is apparently reluctant to be interviewed on his departure (he has always been a little press-shy), but apparently part of the reason he's leaving the country is in common with so many people emigrating - the high level of violent crime.
Mildenhall was the victim of a nasty shooting incident in August 2006, after which he was confined to hospital for some time.
"The real point I think is that Stephen wants to do his own thing, and wants to test himself in international markets," Fury says.
Mildenhall will remain a substantial shareholder in Allan Gray. He's being succeeded by Ian Liddle, a talented fund manager who has been with Allan Gray since 2001 and has been earmarked as the next chief investment officer for some time.
But Mildenhall is entering global investments at a tough time, especially for a smaller start-up operation.
However, he has certainly proved his worth with Allan Gray, he's young (36), and he's patient, so there's no reason why he shouldn't succeed. But apart from being a loss to Allan Gray, he's also a loss to the South African investment industry, in which he carved a unique place.
Lugtenburg to Orbis
At least Lugtenburg will not be entirely lost to Allan Gray. He's joining Orbis, but will continue to focus on South African stocks, Fury says. "Client portfolios will continue to benefit from his advice on South African investments through Orbis."
In a further change at Allan Gray, Andrew Lapping will become a portfolio manager.
Fury says there has been a long list of senior people from Allan Gray who have left the country to start business overseas, starting with founder Allan Gray in 1988 and, more recently, Simon Marais.
Marais, who remains chairperson of Allan Gray, lives in Australia and runs Orbis Australia, an investment company in which he is a shareholder with Orbis.
"In fact Ian Liddle becomes the seventh generation leader at Allan Gray. The process and philosophy we have here has withstood the departure of senior staff before - in fact the firm has done even better, with the philosophy becoming entrenched," Fury says.
Allan Gray was founded and launched in South Africa 34 years ago.
- Fin24